Vodafone Idea set to move TDSAT for recovering Rs 7,249 crore from DoT

Vodafone India and Idea are expected to move Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and cases like these can go further to the Supreme Court, say experts.

NEW DELHI: In its first big regulatory move, Vodafone Idea is set to move the telecom tribunal to recover the nearly Rs 7,249 crore that the Department of Telecommunications (DoT) had forced it to pay before clearing the sector’s largest M&A.

“It is the most logical step to go to courts and recover the money. Later on, auditors should not question that when other telcos have gone to the courts on similar dues, why the merged company not protected its money,” said a person familiar with the new entity’s strategy.

Additionally, the newly created entity needs all the money it can get to strengthen its balance sheet to effectively take on erstwhile market leader Bharti Airtel and moneyed Reliance Jio Infocomm, say experts.

Vodafone Idea did not respond to ET’s email queries. DoT had demanded one-time spectrum charges (OTSC) and other spectrum-related dues from Idea Cellular and Vodafone India in July as a precondition for approving the merger. Vodafone India and Idea then paid Rs 3,926.34 crore in cash and a bank guarantee worth Rs 3,322.44 crore, respectively.

OTSC refers to market price of non-auctioned airwaves, less the entry fee paid at the time of spectrum allotment. These charges have been a bone of contention between DoT and operators, with many matters pending in courts.

Vodafone India and Idea are expected to move Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and cases like these can go further to the Supreme Court, say experts.

“We expect them to move TDSAT. It’s a question of when, not if. Before the merger, they pay the guarantees and the moment it gets sealed, they head for the courts,” said a senior DoT official, asking not to be named. The official added that DoT will exhaust all avenues to defend its demands.

Vodafone Idea, though, has a recent precedent in the Bharti Airtel-Telenor India case, say legal experts. But DoT officials have said that Supreme Court ruling can’t be used as a precedent as the order is specific to that particular case and not binding on other cases, even if similar.

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